Making a company dormant during a strike-off process

[JR7369]

I am in the process of a voluntary strike-off. The last trading point was 03/05 last year and the DS01 was submitted in September 2021. I have had an objection from the bank that holds my BBL which is discussed elsewhere. My accounting year end s 31/03 - should I make the company dormant - which I think means a lower obligation in terms of the accounts - or does this impact the insolvency process ?

Thanks

 

[ChrisCallaghan]

Hello,

If the bank that has provided the BBL has objected, then making the company dormant won't change their stance. Also if your intention is to close the company, I would say you don't need to bother filing any further accounts.

As to what happens next..... assuming the BBL is the only outstanding debt in your company name, then either the bank will eventually cease to object or take action to wind up your company, aka compulsory liquidation. The former is the more likely at the moment, but prepared to wait a while. Currently I am seeing cases like this dissolved after 9 - 12 months from the initial strike off application.

If you wish to see your company closed any sooner, you could consider closing it by way of a Voluntary Liquidation. This is something myself or any of the other insolvency advisors on this forum can help you with.

 

[JR7369]

I think the roundabout question Chris was whether I will be filing further accounts which seems unlikely.....there is HMRC debt too but as per other posts all other debt has moved to PG

Thanks

 

[Adam93]

If you file dormant accounts, they wouldn't reflect the position of the company as it isn't dormant.

There would be liabilities on the balance sheet (namely the BBL) and either corresponding assets or expenses to make the balance sheet 'balance'.

Either do nothing, or submit correct accounts. Don't knowingly submit incorrect accounts.

 

[ChrisCallaghan]

Either do nothing, or submit correct accounts. Don't knowingly submit incorrect accounts.

Completely agree with Adam's advice.

 

[JR7369]

If you file dormant accounts, they wouldn't reflect the position of the company as it isn't dormant.

There would be liabilities on the balance sheet (namely the BBL) and either corresponding assets or expenses to make the balance sheet 'balance'.

Either do nothing, or submit correct accounts. Don't knowingly submit incorrect accounts.

Many thanks @Adam93 - I'll leave as is